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How to Buy Ethereum in New Zealand

This guide explores the best ways to safely buy Ethereum in New Zealand, as well as must-know best practices and considerations. Disclaimer - by publishing this guide, we are NOT recommending you buy Ethereum.
Updated 8 August 2023
Warning:
  1. By publishing this guide, we are not recommending or suggesting in any way or form that Ethereum is a suitable investment.
  2. We published and routinely update this guide to help people decide what's best for them - MoneyHub is conservative and our publisher, Christopher Walsh, has zero Ethereum investments.
  3. We present this information in good faith and remain objective at all times. ​By including this guide under our Investing and Saving section, we are not advocating that cryptocurrency is an investment. We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.

Summary
  • As Ethereum overtakes Bitcoin to become the most used cryptocurrency for money settlement, the ETH price has increased and more and more New Zealanders are interested in investing. The coverage in the media, on social platforms and word of mouth is, for better or worse, bolstering even more attention.
  • In this guide, we'll help New Zealanders navigate the complex and controversial territory of cryptocurrencies to explain how to buy Ethereum in the safest, simplest and most affordable way possible.
  • We will not consider whether you should or should not buy Ethereum; we assume that decision was already made, hence why you're reading this guide.

Our guide covers:

Buying Ethereum with two local and trusted platforms - Easy Crypto and Swyftx

  • Our research highlighted several Ethereum platforms, but few are based in New Zealand and offer transparency. For this reason, we suggest considering the locally-owned (and trusted) Easy Crypto and Australian-based Swyftx platforms.
  • These two platforms are popular with our users, have esteemed reputations and are trusted by tens of thousands of New Zealanders.
  • Both options are free to join, funded from any New Zealand bank account/card, and have a local support team.
  • Advertising Disclosure: We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.

Overview of Buying Ethereum and Must-Know Considerations

Much like other financial assets, you can acquire Ethereum in a variety of ways - from exchanges, from over-the-counter brokers, or in private trades. When you buy Ethereum from an exchange or broker, they should allow funding using bank transfer, debit/credit card or e-wallets like PayPal or POLI. Once you have completed the purchase, they will deliver the coins to a ETH wallet which either you provide, or they provide.

Top Tip - Protect Your Holdings Immediately
  • Once you have purchased Ethereum from an exchange, it's always a good idea to transfer some or all of them to a wallet you control.
  • Exchanges are incredibly vulnerable to hacks and attacks. The infamous New Zealand-based exchange Cryptopia is likely still fresh in everyone's mind. In this scandal, attackers took more than US$17 million in Bitcoins, Ethereum and multiple other coins in early 2019.
  • Unfortunately, there are dozens of stories like this, and that's why Ethereum owners need to take steps to protect their holdings.

For the average investor, the main characteristics to look for in a platform for buying ETH are as follows:

1. Funding methods
Check if the company has convenient funding methods that are familiar to you. Some companies engaged in cryptocurrency trading may struggle with opening bank accounts or partnering with licensed payment processing companies, which means out of necessity they cooperate with payment institutions with a higher risk appetite.

2. Fees
Familiar yourself with all of the applicable fees. Some companies impose transaction or conversion fees to cover what's charged to them by payment processors. For example, free is perfect, one per cent is fair, two per cent is high, and anything more is unreasonable.

Besides charging for making fiat deposits, some companies charge for withdrawing cryptocurrencies to external wallets. Withdrawal fees vary depending on the coin. Fees could be as high as 0.005 BTC, which equates to approximately NZ$40 (as at April 2021).

All exchanges and brokers make their money from transaction fees when users buy or sell cryptocurrencies, and again, they can vary widely. Some platforms charge 0.5% and some charge 0.1% or less, depending on your trading volume. Some exchanges adopt a maker-taker model, where they charge less when limit-orders are used instead of market-orders.

3. Reputation
Look for an established company with an active user base. The more users a company serves hints at greater liquidity on the platform, making it easier to buy and sell Ethereum. There are many options in the market today which have been operating reliably for years.

4. Compliance
Decentralised finance advocates might disagree with this point; however, an important characteristic of a legitimate venue for buying Ethereum is if the company requires ID verification before providing services. Companies engaged in trading cryptocurrencies face endless scrutiny from banks and payment providers due to the relative anonymity involved and perceived risks of facilitating money laundering and terrorist financing. Therefore, robust KYC and AML procedures should be in place.

5. Liquidity
It's important to know you have the ability to sell your Ethereum quickly and easily, should you want to liquidate them. Also, check how your sale will be settled, how long it will take, and if any transfer fees should be expected.

6. Range of products
If you're interested in buying other cryptocurrencies, you may want to review what else is offered. Most large exchanges and brokers offer numerous cryptocurrencies and digital assets. The features of the platform might also be of interest, depending on your Ethereum investment strategy. If you want to make a couple of purchases, you probably want a simple application which doesn't require learning how to use some advanced trading software. However, if you're looking to trade Ethereum​ and other cryptocurrencies more actively, then a sophisticated trading platform will be more compelling.

Where can you buy Ethereum in New Zealand?

There are several options for buying Ethereum in New Zealand - our list below includes the most trusted and popular methods.
Disclaimer - the inclusion of any Ethereum exchange or broker below is not an endorsement or a promotion. Our list is for information purposes only.

Easy Crypto

Easy Crypto is another example of a popular destination to buy and sell Ethereum and a series of other digital assets in New Zealand. Easy Crypto has also adopted the non-custodial route and requires users who buy cryptocurrencies from them to have a private wallet to receive the settlement of their purchase. Moreover, the company has gone to great lengths to guide users on keeping their cryptocurrencies safe, with recommendations on hardware wallets, and plenty of user guides on each recommended model.
 
Payment methods: POLI instant pay, debit or credit card, or local NZ bank transfer
Fees: All fees are included in the spread, which is why the bid and offer prices might look higher than other platforms. The fees are around 0.70% to 0.90%.
Minimum order size: NZ$50
Settlement: Private wallet
Coins available: 109, including Ethereum​
Learn more: ​Easy Crypto

Swyftx

Swyftx launched its dedicated New Zealand platform in August 2021 with a focus on low fees, minimal spreads and a wide choice of coins. The exchange offers 280+ different coins, including Ethereum. Almost all coins are able to be sourced through the Swyftx order page.

The details:
  • Fiat payment methods: To buy Ethereum with New Zealand dollars on Swyftx, only debit card payments are permitted.
  • Withdrawal fees: Minimum withdrawal of NZ$30 with a NZ$10 withdrawal fee.
  • Trading fees: 0.6% platform fee on the value of the transaction. Swyftx states that it offers high volume discounts.
  • Verification requirements: The steps from signup to trade are simple - first, users create an account (by entering their name and details). Then, Swyftx verifies your ID (via photo ID, phone number and email address) and, once done, asks for a deposit (made via a debit card). Once the deposit has cleared, users can start trading.
  • Limits: Daily deposit limit up to NZ$50,000, no trading limits.
  • Markets available: Various
  • More details: Visit Swyftx and/or read our Swyftx review.

Binance

According to average daily turnover, Binance is one of the largest crypto exchange platforms in the world. After launching in 2017, the company established itself globally and is constantly shrouded with more rumours of expansion in a short space of time. Among many other services, such as crypto fixed income products, derivative products, margin trading and more, Binance also offers New Zealanders a gateway to buying Ethereum locally.
 
Payment methods: Debit/credit card via third-party payment provider Simplex
Fees: Card processing fees are 3.5% with a minimum fee of US$10. When withdrawing Ethereum, for example to your private wallet, there is a withdrawal fee of 0.0005 BTC, approximately NZ$28
Minimum order size: The minimum order size is the equivalent of US$30, which is approximately NZ$46
Settlement: On an account
Coins available: With a bank card, you can buy 18 different cryptocurrencies, including Ethereum​. On the exchange, there is hundreds of coins are available to trade once you have an account funded with crypto
Learn more: ​Binance

Buying Ethereum with two local and trusted platforms - Easy Crypto and Swyftx

  • Our research highlighted several Ethereum platforms, but few are based in New Zealand and offer transparency. For this reason, we suggest considering the locally-owned (and trusted) Easy Crypto and Australian-based Swyftx platforms.
  • These two platforms are popular with our users, have esteemed reputations and are trusted by tens of thousands of New Zealanders.
  • Both options are free to join, funded from any New Zealand bank account/card, and have a local support team.
  • Advertising Disclosure: We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.

​​How to Keep your Ethereum Safe by Protecting Your Private Key

Typically, when you invest money in the financial markets, you do so via a licensed and authorised broker to deal or issue those instruments and act as a custodian for your collateral and your assets. These traditional financial services providers need to meet fitness and proprietary requirements before a license is issued, requisition external auditors annually, submit reports to authorities and meet strict operational and fiduciary responsibilities. For the most part, these checks and balances don’t exist in the cryptocurrency industry, and most companies are left to follow their instincts. Therefore, investors are left to their own devices to keep their digital assets safe from accidents or incidents.

The best way to keep your Ethereum safe is to use one of the popular hardware wallets that the Ethereum community has already tried and tested. When it comes to Ethereum, the asset you want to protect is the private key, not the coins themselves. The private key is used for signing transactions and allows anyone who possesses it to transfer Ethereum from the corresponding address.

Without going into great detail concerning the underlying cryptography used to make this all possible, a hardware wallet allows you to create Ethereum transactions without connecting to the internet, therefore significantly protecting the private key.

Frequently Asked Questions about Ethereum and Your Keeping Ethereum Safe

There is a lot of misinformation about Ethereum - our shortlist of common questions help you understand some of the finer details.

How Does Ethereum Work?

Ethereum is similar to Bitcoin, although, unlike Bitcoin, Ethereum is not a cryptocurrency. Instead, Ethereum is the platform that the cryptocurrency Ether functions within. To be specific, Ethereum calls itself a "decentralised computing network built on blockchain technology".

Ethereum works on a blockchain network, and like Bitcoin, it is decentralised. This means that all the holders of Ethereum manage the network - there is no centralised entity controlling Ethereum or the transactions that occur. 

What is unique about Ethereum compared to Bitcoin?

​Unlike Bitcoin, Ethereum's network performs computations as part of the day-to-day mining process. This means that the platform combines its purpose of a store of value and medium of exchange with a global computing engine. Bitcoin isn't similar in this sense - it's only used as a currency and store of value.

Ether vs Ethereum - What is the Difference?

  • Ether - Ether can be used as a digital currency in financial transactions, as an investment or value store. Ether is a cryptocurrency.
  • Ethereum - Ethereum is the blockchain network where Ether is held and traded. Beyond this, the Ethereum network can host applications (as an alternative to Amazon, Google or web hosting platforms etc.). This is, arguably, more beneficial to users who can trust that their data is secure and there is no central entity owning or managing the transaction. 

Ether is also being used as an alternative to escrow or traditional contracts. In such instances, a buyer and a seller agree to their trade on the Ethereum blockchain. When the contract's conditions are met, the transaction is automatic, and Ether is delivered to the appropriate party.

Is it safe to use online Ethereum wallets?

Like many things in life, it’s safe, until it isn’t. Online Ethereum wallets offer a lot of conveniences, but they come at a cost. When you keep your crypto in an online wallet, there is always a risk that the provider could be compromised. Cybercriminals are always looking for new ways to exploit cryptocurrency users and businesses. The best advice is to take charge and use a private wallet you control.

Is it safe to keep Ethereum on an exchange?

Many exchanges allow you to keep your purchased cryptocurrencies in an account on their platform. The idea is to make it convenient for active users to buy and sell cryptocurrencies. Most exchanges encourage users to keep Ethereum (and other coins) in private wallets. Its well-known exchanges are the targets of aggressive and sophisticated attacks due to the large amounts of cryptocurrencies under their control. If you’re planning on holding Ethereum for the long term, you should make the necessary arrangements to keep your coins safe.

Can I invest in Crypto via KiwiSaver?

Yes, a select few schemes offer the opportunity to do so. One scheme, Koura KiwiSaver, allows members to invest in their Carbon Neutral Crypto Currency Fund. This is a fund that invests exclusively in Bitcoin. It has a long-term buy-and-hold strategy for investing. Please be aware that cryptocurrencies are highly volatile, and while KiwiSaver is a long-term investment, allocating money to crypto is not without risks. You can learn more about the fund here.

Buying Ethereum with two local and trusted platforms - Easy Crypto and Swyftx

  • Our research highlighted several Ethereum platforms, but few are based in New Zealand and offer transparency. For this reason, we suggest considering the locally-owned (and trusted) Easy Crypto and Australian-based Swyftx platforms.
  • These two platforms are popular with our users, have esteemed reputations and are trusted by tens of thousands of New Zealanders.
  • Both options are free to join, funded from any New Zealand bank account/card, and have a local support team.
  • Advertising Disclosure: We may earn a referral bonus for anyone that clicks on some of the below links - see our Advertising Policy for more details.
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